Do we have to pay gift tax on money given to us for our wedding? 6 Answers as of November 26, 2010

My father in law gave us $11,000 this year for our wedding. I read under IRC 2503 that gifts up to $10,000 are not taxed. Does this mean we have to pay taxes on this money?

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Givner & Kaye
Givner & Kaye | Bruce Givner
No. In 2010 the annual gift tax exclusion is $13,000 per person. Your father-in-law can give $13,000 to you and $13,000 to his daughter, for a total of $26,000. Therefore, the $11,000 gift is significantly below the annual gift tax exclusion. Caution: if your father-in-law has given other gifts to his child, that may cause the wedding gift to exceed the annual gift exclusion. If that is the case, then he must file an IRS Form 709 (Federal Gift Tax Return) reporting all gifts, even those covered by the annual gift tax exclusion.
Answer Applies to: California
Replied: 11/26/2010
Mankus & Marchan, LTD
Mankus & Marchan, LTD | Tony Mankus
Gifts are taxable to the DONOR, not the recipient. There is a statutory exclusion from tax to the Donor for any gift(s) to any one person below a certain amount, depending on the year of the gift(s). Currently it is $13,000.00 per year. See IRC 2503(b).
Answer Applies to: Illinois
Replied: 11/24/2010
David Hoines Law
David Hoines Law | David Hoines
There is no tax in this situation.
Answer Applies to: Florida
Replied: 11/24/2010
LT Pepper Law
LT Pepper Law | Luke T. Pepper
Just the thousand above the threshold and if the thousands puts you in the income bracket.
Answer Applies to: Pennsylvania
Replied: 11/23/2010
Meyer & Yee, LLP
Meyer & Yee, LLP | Kent W. Meyer
No, it would not be subject to tax because the current annual exclusion amount is $13,000 per donor per donee. This amount is adjusted for inflation each year. Amounts in excess of the annual exclusion may be covered by the $1 Million Dollar lifetime gift tax credit.

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Answer Applies to: California
Replied: 11/23/2010
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